Sponsored Content WEBINAR: ELECTION 2008: E-mail Tips from a Political Insider   WEBINAR: Becoming the Illusionist: The Magic of Using "Brand" to Drive Response without Results Disappearing in the Process   WEBINAR: Score and Win Through Cooperation   TOOLS OF THE TRADE: Holiday's are prime-time for email marketing - maximize your ROI by getting to the inbox   ON DEMAND WEBINAR--MASTER CLASS: High Performance Online and Off-line Strategies for Large Scale Customer Acquisition   FREE WHITE PAPER - Direct Mail and the Internet Find any supplier you need - agencies, CRM, fulfillment, lists, e-commerce, paper, printers, telemarketing, and more. Featured Categories Lists and Data Telemarketing Database Marketing E-commerce Web Marketing Agency & Creative Services Print, Production & Paper Lists and Data Processing :: view all categories Get free access to more than 50,000 list data cards - one of the most comprehensive databases in the industry. >> Search Now DIRECT Buzz Blog Webinars Buyer's Guide Calculators JobZone ListFinder Promo Calendar Research Store E-Newsletters Print Magazine This Month in Direct Magazine Bare Bones Postal reform works. The rate hike that takes effect May 12 is the lowest in memory: an average of 2.88%. And some mail classes are getting even less than that... See Full April Issue

Recently the U.S. Postal Service filed a request for higher rates with the Postal Rate Commission. The postmaster general is on record saying the USPS is asking for a simple, 5.4% across-the-board increase. This, he said, would raise the money the USPS needs to make a $3.1 billion escrow payment that Congress mandated in P.L. 108-18, the Civil Service Retirement System Funding Reform Act of 2003.

If you take a look at the USPS' actual filing, you'll easily discover that the PMG was as good as his word about the “across the board” thing. And, since Congress leaves him few options, an escrow payment will have to be made. So rates, it would seem, are going to rise.

The postal service is hoping this request will be received by its various constituents without a great deal of weeping and grinding of teeth. That is, “The USPS needs the money. The manner by which it seeks to raise that money is fair. So please, if it's possible, let's settle this case and forgo the usual litigation.”

In several respects, this rate case lacks many of the controversial elements that have made previous ones particularly contentious. But if R2005 is simple, you ain't seen nothin' until you get a gander at what R2006 will be like.

Yes, that's right: The postal service will be filing another rate increase request about this time next year with an eye toward implementation in early 2007. And it promises to be the mother of all rate cases.

In R2005, the USPS has put off (for the sake of expediency) any effort to redefine the relationships that exist within and among the various classes. These costing, pricing and rate-design issues, however, are sure to surface in a very big way in R2006.

It would be kind of nice to have R2005 put quietly to bed, because our industry will have more than its fair share of work to get ready for R2006. This is a time when “postal transparency” will be needed most. What does the USPS intend to do in R2006? What must mailers do to prepare for the changes that'll be coming from it?

Let's hope we don't have to wait until the case is actually filed to begin getting the information we need.

GENE A. DEL POLITO is president of the Association for Postal Commerce (PostCom) in Arlington, VA.